Bond Street rents top the premier league
Published: 13 July, 2011
The global market for luxury goods has emerged from the financial crisis significantly faster than expected, according to new research from Jones Lang LaSalle
London’s New Bond Street is the most expensive luxury shopping street in Europe, with top rents reaching €7,900 per sq m. On Avenue Montaigne in Paris rents reach up to €7,500 per sq m and on Moscow’s Stoleshnikov Lane rents are as high as €7,015 per sq m.
Robert Bonwell, CEO, EMEA Retail at Jones Lang LaSalle, said: “The luxury sector is the most internationalised in the retail market, with brands adopting true global strategies. Most have big expansion plans into Asia and emerging markets, creating a new class of high-income consumers with an appetite for luxury goods. However the international appeal of traditional high-end luxury retail districts in London and Paris has lead to brands resuming investment in mature western markets via extensive refurbishment and expansion of existing stores.”
The highest density of international luxury labels can be found in Paris. The top 100 luxury labels operate more than 150 luxury stores, proving the French capital remains Europe’s uncontested centre of fashion and luxury shopping. Only London has a similar density with 125 luxury outlets from the top 100 brands. Milan has just under 90, while Moscow and Rome follow behind with 66 and 59 luxury label stores, respectively.
Martin Thomas, head of Jones Lang LaSalle’s Central London retail division said: " Bond Street remains top of most occupiers priorities. The limited supply of stock has driven rental growth throughout the last two years and premium levels have also risen significantly as the demand for space has continued. Consumer spend in London comes from many global areas, with Russian, Chinese, and Middle and Far East money being prevalent. There are certainly no signs of this rental growth slowing down at present and trade remains strong for so many of the top luxury brands."
